CMA Calls for Public Consultation on Opening Main Market to Non-Resident Foreign Investors

   Riyadh, October 2, 2025, SPA -- The Capital Market Authority (CMA) called on relevant and interested persons participating in the capital market to share feedback on opening the Main Market to all categories of non-resident foreign investors and enabling them to directly invest in it. The consultation period will last for 30 calendar days, ending October 31.
   The draft aims to broaden and diversify the base of investors eligible to participate in the Main Market, while also attracting additional investments and increasing market liquidity.
   If approved, the proposed draft will eliminate the concept of the Qualified Foreign Investor (QFI) in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements. It will also abolish swap agreements, which were previously used as an option to allow non-resident foreign investors to obtain only the economic benefits of listed securities, and instead grant them the ability to directly invest in listed shares on the Main Market.
   By the end of the second quarter of 2025, international investor ownership exceeded SAR 528 billion, while foreign investments in the Main Market reached around SAR 412 billion during the same period, representing a growth of 471% compared to SAR 72 billion at the end of 2015. The draft is expected to further attract additional foreign investments.
   In July 2025, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. These included foreign investors residing in one of the Gulf Cooperation Council (GCC) countries, as well as those who had previously resided in the Kingdom or in any GCC country. This initiative aimed to strengthen confidence among participants in the Main Market and further support the local economy.
   The draft aligns with the CMA's gradual approach to opening the market, building on previous phases and paving the way for complementary steps aimed at further liberalizing the capital market. The goal is to position it as an international marketplace capable of attracting greater flows of foreign capital.
   The CMA emphasized that the comments of relevant and interested persons shall be taken into full consideration for the purpose of approving the final proposed amendments, which in turn shall contribute to the aim of enhancing and developing the regulatory environment.
   Participant can receive opinions and comments through the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), which is affiliated with the National Competitiveness Center. The platform can be accessed via the link:   https://istitlaa.ncc.gov.sa/en/Pages/default.aspx
   -- SPA